There is nothing wrong with being a 1099 employee, if and only if you understand the tax game. I would prefer to be a 1099 employee, being a 1099 employee allows you more tax write offs, and flexability as a worker. What ever you contract your rate at add 15% to it to cover your self employeement tax that the IRS will charge you at the end of the year. The 15% is on the adjusted gross, being a 1099 employee gives you more options for write offs to lower your adjusted gross income allowing you to keep more of the 15% you charged up front. Basically that 15% is social security (fuck social security). It doesn't matter if you are a 1099 employee or not you will pay federal and state taxes which are seperate from the 15%. Just make quaterly payments on those because you no longer have your employer taking them out of your check and paying them for you. In the long run you will take more home being a 1099 employee if you take full advantage of the tax system. Don't fear it, embrace it. I would rather keep more of my money then give it to the government who are the real scum bags not the employers who offer there employees 1099 employment. NO the fact and keep them real.
Really, since when has being self employed been classified as going against the IRS tax code? Being a independent contractor makes you self employed. Nothing more, nothing less. I will take self employment everyday all day long. Like I said before you better understand how it works and protect your self so you don't have to worry about getting the lube ready. But, being self employed is not for the simple minded people who want the government to take care of all the wants and needs.
As self-employed contractor you should have a general business license, and your own insurance.
Plus to that you have to have ARD license from BAR, because you are contracting as repair dealer. In case contractor passes UC, citation should be against his ARD, not the owner of the smog station.
It will only be a problem when you get ratted out, or god forbid an injury. Then the heavens will open up with $$ problems from all state agencies wanting their $$, plus penalities.
My basic understanding is you have to have everything in your name for it to be legit. Good luck and hope that nothing bad happens.
I will tell you this, save every scap of reciept you can find, Lunches, Miles on your car, car maintenence, phone bills....everything you do or buy (business related) becomes a write off.
I have not had any issues for doing it but, I could not get ahead either because you are paying the full amount for Social Security, Medical, and other things that would otherwise would be paid for by your employer.